The shipping crisis is worsening relations between Zim Integrated Shipping Services Ltd. and some of its local agents. The Philippine press reports that the Manila Regional Trial Court has ordered the foreclosure of 74.5 million peso worth of Zim assets in the in a 207 million peso (NIS 17 million) lawsuit filed by Overseas Freighters Shipping Inc. against Zim. The assets were hundreds of containers in the Manila and Davao ports.
Zim has asked the court to overturn the ruling and to recall the writ of preliminary attachment. Zim said that the Manila Court Sheriff, which seized the properties, acted “maliciously, with evident bad faith, and undue haste.”
Zim said that it had terminated the agency agreement because Overseas Freighters' failed in its duties to protect Zim's interests.
Overseas Freighters alleges that Zim was in breach of their agency agreement, and that Zim, among other things, moved to replace Overseas Freighters' general manager without prior coordination. Overseas Freighters also claims that Zim's termination of the agency agreement may a deal torpedo a deal to sell up to 40% of the company to another Philippine company. Zim said that it was not bound by the transaction between the two Philippine firms.
Ofer Holdings Group subsidiary Israel Corporation (TASE: ILCO) owns Zim.
Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2009
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